Thursday, 29 August 2019

Your Paytm, GPay, other mobile wallet Ac's could be blocked from Sep - Do this

Your Paytm, Google Pay, Phone Pay and other mobile wallets may get blocked from September 1 if you fail to do the KYC by August 31st. According to the Reserve Bank of India (RBI) notice to the various mobile wallet companies, they are bound
to do the KYC of its mobile wallet account holder by August 31st, 2019 else the central bank would block all mobile wallet accounts from September 1st. In fact, August 31st wallet compliance was supposed to be completed by February 2019 itself but after receiving a series of requests from the mobile wallet companies, the RBI extended this deadline for another six months.

In February, near 70 to 80 per cent of the mobile wallet user base was yet to comply with KYC compliance norms. Mobile wallets operated by companies like Paytm, Google Pay, Phone Pay etc., were banking heavily on Aadhaar Card number for e-KYC, but they got barred from that after the Supreme Court verdict on the Aadhaar linking matter that struck down Section 57 which allowed the private usage of Aadhaar.

According to the RBI master circular on PPI (prepaid payment instruments), mobile wallets like Paytm, Google Pay, Phone Pay etc., users who are yet to complete KYC, won't be allowed to transact or load money into their mobile wallet from September 1 if they fail to do so by August 31. The PPI operators have also been directed to give a one-time option to the mobile wallet users to transfer their outstanding wallet balance to their respective bank accounts without levying any charges.

Mobile wallet companies like paytm, Google Pay etc., are now faced with physical KYC compliance, which is more costly than Aadhaar-based e-KYC, and the customer movement to simpler payment options like UPI.

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